USDC

jenkempuffer

The big innovation with Railgun is that the smart contract can talk to other smart contracts, meaning you can do private DeFi with your private balance. This amplifies the privacy you get vs another privacy project with similar TVL as each DeFi interaction decreases the likelihood a deposit can be linked to a withdrawal as there is more transaction "noise". As such, it's not really a mixer per se as there is more utility and thinking behind the protocol design and is more aimed at private DeFi vs simply hiding the origin of funds. If you stick to common assets like USDC, DAI or ETH, you would also be pretty well anonymised. Obviously, if you're the only person to shield ObamaInuSonicChan then the heuristics are pretty easy to break.

CointestAdmin

#Bitcoin Con-Arguments Below is an argument written by bkcrypt0 which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > # Bitcoin is failing its original mission, and institutional interest is going to make things worse. > > **Background** > > Satoshi Nakamoto was a financial revolutionary out to counter the fiat money presses that destroy a currency's value with inflation (looking at you Turkey and the U.S.) The method—create a currency with a fixed supply, mined liked gold to make it scarce, and digitally transferable anywhere in the world between any parties. > > **Lack of Stability** > > Bitcoin can't be used as a global currency to replace fiat and eliminate politicized money printing because it has to hold its value steady over time. > > Why? > > People work for dollars, euros, yen, or yuan because there is relative stability in their paychecks from week to week. Their food, rent/mortgage, clothing, energy costs are also relatively stable (inflation is the cost for using that particular currency, but it beats a 50% drop in value over the course of a few months, and most inflation around the world isn't as bad as Turkey or Venezuela.) > > Imagine being paid a flat 1BTC / year for a particular job. But you live in the U.S. and the value of that BTC just dropped over the course of the year by 50%. Your lease is fixed over 12 months. Your food costs are the same or maybe even higher. Not only do you still get hit with local inflation, your buying power just dropped by half. > > This is why over $155B\* have flowed into stable coins like USDT, USDC, BUSD, UST, and DAI) > > **Lack of Accountability** > > The relatively anonymous transfer of value between parties was supposed to be a positive aspect of bitcoin. Your money, so do what you want with it. The problem is, there are a lot of other people that also want anonymity — human traffickers, dangerous drug smugglers, crime syndicates, tax evaders. Sure they can also use USD (and most of them do), but they are also traceable if they enter the global financial system. > > Making it easier for criminals to evade authorities makes everyone less safe. And sure, no one likes to pay taxes, but consider the alternative. Roads, schools, social services, some hospitals, police and fire departments, they all rely on taxes. > > **Lack of security** > > Unlike gold, which is pretty much indestructible, Bitcoin holdings depend on keeping seed phrases secure. If there were a house fire a gold bar might melt, but it can be reformed. A hardware wallet will be destroyed and any seed phrases stored on paper will be gone. That's part of gold's appeal as a store of value. > > Also, were there to be an internet outage in any widespread way, Bitcoin is useless as a transaction currency (part of the appeal of physical paper money and metal coins.) While unlikely, this scenario speaks to the lack of overall security in Bitcoin as a means of exchange (it has other benefits like cryptographic security, but its lack of physicality poses problems with public perception, and practical uses.) > > **Acts like fiat, moves like fiat . . .** > > Bitcoin remains highly correlated to traditional finance markets (two recent readings were the highest they've been -- see link below) and doesn't exactly act as a hedge against inflation when it plummets in the face of, well, high inflation. > > What this shows is that big money is controlling Bitcoin (and by association the rest of crypto) by reacting in the same risk-off reaction when inflation flares up. > > It goes something like this: > > * When inflation rises, the Fed tightens money supply to slow things down. > * Big money flees from riskier assets like company stock (they likely won't be as profitable in a high inflation world) > * Stock prices drop \[and here's the problem\] > * Money does not flow INTO crypto as a hedge against this risk, it also flees. > > **Conclusion** > > Fighting fiat money printing excesses was never going to be easy, but as with most revolutions, unintended consequences often derail the original vision. > > For one, government policies can avert the worst of political impulses. That doesn't require a wholesale financial market revolution. > > U.S. inflation has also been remarkably low for well over two decades. It was a once in a century global pandemic that forced a massive print run of dollars. > > Bitcoin has also become just another a plaything for the rich, a commodity to be bought and sold for profit rather than the antidote to centralized money creation. And because even larger stacks of fiat are on the sidelines waiting to jump in, volatility is going to get even worse with big swings as fund managers chase and take profits. > > None of this means Bitcoin has no value in global finance. It just means it isn't going to serve the purpose as originally intended. > > \------------------ > > * For Bitcoin correlation to stocks see: [https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes](https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes) > * Stablecoin totals for the five mentioned above were calculated on 1/11/21 from CoinMarketCap - [https://coinmarketcap.com/](https://coinmarketcap.com/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2lpo/top_10_bitcoin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xu3vcu\/daily_general_discussion_october_3_2022_gmt0/).

wesblog

You could move it to USDC and then immediately back to BTC. Then you claim the loss. I dont think they have gotten rid of the was loophole yet.

CointestAdmin

#USDC Con-Arguments Below is an argument written by madpanda94 which won 3rd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > My analysis comes from a post from 1 month ago written by me [https://www.reddit.com/r/CryptoCurrency/comments/pkita5/knowyourcrypto\_8\_september\_8\_2021\_usd\_coin\_usdc/](https://www.reddit.com/r/CryptoCurrency/comments/pkita5/knowyourcrypto_8_september_8_2021_usd_coin_usdc/) > > # What is it? > > USD Coin is a stable coin, which is a cryptocurrency that has the same value as a classic currency, in this case the US dollar. It is a similar project, in several ways, to other stable coins. It is also the stable coin managed directly by the Coinbase and Coinbase PRO exchanges, one of the most important exchanges in the world. USD Coin, as it should be more than clear from the name, is pegged to the dollar. What does this mean? It means that the value of a USDC token will always be equal to the value of one dollar. We will always be able to convert (we will see the special cases later) a token of this type into dollars. As we can then see on the main markets that change it, the price can fluctuate very slightly with respect to that of the dollar, generally in the order of thousandths of a percentage. These are very small variations that are mostly dependent on the small inefficiencies that can be created on the market. Perhaps one of the best qualities of USDC is that it is controlled by a consortium, in which partecipate several players in the cryptocurrency industry. It was in fact founded by Circle, and today also hosts the popular Coinbase exchange, and the mining company Bitmain, which is one of the largest investors in Circle. An internal project? No. A project that today has behind it the most serious groups circulating in the world of cryptocurrencies. > > > # How does it work? > > Like all stable coins, USD Coin also has as its main use to act as a counter value on high-frequency exchanges, obviously being tokenized. Therefore, its first use is to act as a counterparty in the negotiations that take place within the main exchanges. Coinbase aims to use it as a means of payment, offering free wallets and above all the possibility for everyone to exchange a crypto with a stable value expressed in dollars without the delays and costs that are instead connected to classic banking. USD Coin is a ERC-20 token, which is a token that is compatible with the Ethereum blockchain. A choice of this type has proved to be a winning one over time because the Ethereum network today offers reliability and allows this stable token, USDC, to be used in many decentralized finance projects. USDC is not mined, that means it is not created by solving very complicated algorithmic calculations. In fact this product is issued on demand. Anyone who buys USDC from Coinbase will have new ones delivered and never released. The doubt in this case is that Coinbase, as well as the other agents involved in the project, can issue more money than they will actually be able to convert one day. This problem can be overcome, provided that the exchange actually has US dollars or equivalent in cash. > > > # Where to store it? > > The best hot wallets for USD Coin are Coinbase Wallet, TrustWallet and Atomic Wallet. If you want more security, a cold storage like Ledger or Trezor is the right choice. > > > # Pros&Cons > > \*DISCLAIMER\* These lists are subjective, it depends from person to person > > **Pros** > > > 1. Solid backers > > 2. Useful > > 3. Future projects > > **Cons** > > 4. High competition ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pz48y3/rcc_cointest_top_10_usd_coin_conarguments_october/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xu3vcu\/daily_general_discussion_october_3_2022_gmt0/).

CointestAdmin

#USDC Pro-Arguments Below is an argument written by ExchangeEnough7821 which won 2nd place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > What is USD coin? > > USD coin is a stablecoin, first announced in May 2018. It is developed by the Circle Consortium - a partnership between the company Circle and the exchange Coinbase. Circle and Coinbase are responsible for issuing the USD coin, and Centre develops the technology behind and the framework of it. Circle is a company founded in 2013 by Jeremy Allaire and Sean Neville, and is an official Money Transmitter – it must comply with federal law and regulations. Now, it has over 60 partners and is continuing to expand. > > Uses of USD coin: > > • Avoid inflation in countries with weak economies > > • Send money around the world without large fees, securely and instantly > > • Short other coins without having to convert to fiat > > • Buys things in crypto based apps and websites > > Pros of USD coin: > > • USD coin has many high value and reliable partneships with large firms, that gives the project stability and credibility. These include Goldman Sachs, Bitmain and IDG Capital, and these high profile links mean USD coin can be seen as trustworthy > > • Transfers with USD coin only take roughly 15 seconds, compared to the minutes it takes for a fiat wire transfer or similar – this means it has a use case in transferring money across the globe quickly > > • The cost of money transfers remains the same no matter the size – it is the Ethereum gas fee-, and this means for high value transfers it can be cheaper than other fiat versions, which may take a percentage > > • Compared to the US Dollar, you can earn a much higher interest on the coin with decentralised apps, so is more profitable when holding than fiat currency. > > • It is backed 1 to 1 with the US dollar – one of the strongest and most reliable currencies in the world, so is also a very reliable stablecoin. > > • USD coin can be used by those who don’t have access to traditional bank account due to age or location, so can still cash out other coins into an exchange > > *”What is USD coin” and “Uses of USD coin” is copied between both of my USD pros, and USD cons, but I wrote it myself* ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestAdmin

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.

Alanski22

Buying a Reddit NFT on openseas was my first time actually using Matic. Couldn’t believe the low network fee compared to Eth! Just swapped USDC for another crypto with Matic and was truly amazed. Eth has made us accept some fucked up fees, Matic feels like a saviour!

MaeronTargaryen

9 out of 12 huh? What’s left? USDC, USDT and BNB?

CointestAdmin

#USDC Con-Arguments Below is an argument written by ExchangeEnough7821 which won 2nd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is USD coin (USDC)?** > USD coin is a stablecoin, first announced in May 2018. It is developed by the Circle Consortium - a partnership between the company Circle and the exchange Coinbase. Circle and Coinbase are responsible for issuing the USD coin, and Centre develops the technology behind and the framework of it. Circle is a company founded in 2013 by Jeremy Allaire and Sean Neville, and is an official Money Transmitter – it must comply with federal law and regulations. Now, it has over 60 partners and is continuing to expand. > Uses of USD coin: > • Avoid inflation in countries with weak economies > • Send money around the world without large fees, securely and instantly > • Short other coins without having to convert to fiat > • Buys things in crypto based apps and websites > > > **Cons of USD coin** : > • Although the cost of transferring USD coin may be less than if it were fiat, when the Ethereum network is congested it can get very expensive to transfer even a small amount > > • Although USD coin can be use in some DeFi apps and games, there are very few day-to-day uses for USDC – there is almost no shops, restaurants or companies that will accept it in everyday circumstances, reducing its usability > > • Staking USDC can be risky compared to holding fiat in a bank – banks have FDIC insurance and your money is almost guaranteed to be safe, albeit with a lower interest rate, but there are many examples of DeFi apps that have been hacked with funds drained so your money is in more danger > > • Another issue that may put people off from USD coin is that it is centralised – it is governed by Circle, so it the reserves cannot be verified, unlike decentralised options like DAI and SameUSD > > • Although transferrin USD coin is very fast, certain fiat services -most notably PayPal – have even shorter transfer times, sometimes 1 second or less > > • Even though crypto is getting more mainstream with simpler apps, it can be difficult for many to understand how to use and stake this coin to achieve its full potential, and if it is held in private wallets and the seed key is forgotten there is nothing anyone can do to retrieve the funds, unlike apps like PayPal > > \*”What is USD coin” and “Uses of USD coin” is copied between both of my USD pros, and USD cons, but I wrote it myself\* ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2moj/top_10_usd_coin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xta3ma/daily_general_discussion_october_2_2022_gmt0/).

CointestAdmin

#USDC Pro-Arguments Below is an argument written by ExchangeEnough7821 which won 2nd place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > What is USD coin? > > USD coin is a stablecoin, first announced in May 2018. It is developed by the Circle Consortium - a partnership between the company Circle and the exchange Coinbase. Circle and Coinbase are responsible for issuing the USD coin, and Centre develops the technology behind and the framework of it. Circle is a company founded in 2013 by Jeremy Allaire and Sean Neville, and is an official Money Transmitter – it must comply with federal law and regulations. Now, it has over 60 partners and is continuing to expand. > > Uses of USD coin: > > • Avoid inflation in countries with weak economies > > • Send money around the world without large fees, securely and instantly > > • Short other coins without having to convert to fiat > > • Buys things in crypto based apps and websites > > Pros of USD coin: > > • USD coin has many high value and reliable partneships with large firms, that gives the project stability and credibility. These include Goldman Sachs, Bitmain and IDG Capital, and these high profile links mean USD coin can be seen as trustworthy > > • Transfers with USD coin only take roughly 15 seconds, compared to the minutes it takes for a fiat wire transfer or similar – this means it has a use case in transferring money across the globe quickly > > • The cost of money transfers remains the same no matter the size – it is the Ethereum gas fee-, and this means for high value transfers it can be cheaper than other fiat versions, which may take a percentage > > • Compared to the US Dollar, you can earn a much higher interest on the coin with decentralised apps, so is more profitable when holding than fiat currency. > > • It is backed 1 to 1 with the US dollar – one of the strongest and most reliable currencies in the world, so is also a very reliable stablecoin. > > • USD coin can be used by those who don’t have access to traditional bank account due to age or location, so can still cash out other coins into an exchange > > *”What is USD coin” and “Uses of USD coin” is copied between both of my USD pros, and USD cons, but I wrote it myself* ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestAdmin

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.

CointestAdmin

#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

CointestAdmin

#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

CointestAdmin

#USDC Con-Arguments Below is an argument written by Blendzi0r which won 1st place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > First published on: [30.09.2021](https://www.reddit.com/r/CryptoCurrency/comments/og2nfy/comment/hewkfxw/?utm_source=share&utm_medium=web2x&context=3) > > Last edited on: *no edits yet* > > # Intro > > USD Coin (USDC) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDC is currently the second largest stablecoin. \[1\], \[2\], \[3\] > > # Cons > > **It’s centralized** > > Decentralization is one of the core principles of crypto industry. USDC is centralized. Centre (nomen omen), the consortium that is responsible for USDC, can freeze anyone’s USDC assets whenever they want to. In 2020, they blacklisted an address and froze $100,000 in USDC in response to a request from law enforcement \[4\]. In this case, the freezing of assets was the right thing to do but nothing stops Centre from freezing assets in more controversial circumstances. > > ​ > > **It has fewer trading pairs and blockchains than tether** > > USDC announced in June 2021 that it wants to expand to 10 more blockchains in the near future \[5\]. But as of now, it’s present on 5 blockchains (Ethereum, Algorand, Solana, Stellar and Tron) whereas USDT, its main competitor, is available on 8 blockchains. \[6\] > > USDC is even more pale in comparison to USDT when it comes to the number of available trading pairs. There are barely any coins that aren’t paired with USDT, when USDC usually allows to buy only the most popular coins. > > ​ > > **Is it really that transparent?** > > Circle claimed in the past that all USD Coins are backed 1:1 against US dollar (cash). This is not the case anymore. And while people praise USDC for being more transparent than Tether and having better, more reliable reserve composition, just until recently Tether was completely nontransparent and lied about its reserves, so it’s hard to look bad when compared to Tether. > > Circle isn’t in fact that transparent. For example, they don’t disclose too much information about funds referred to as “approved investments”. **We don’t know how risky those investments are.** USDC has licenses in most of the states in the US. Some of those states have absolutely no restrictions and if Circle operates under the license from one of those states, it can invest in anything it wants. \[7\] > > Also, if you compare USDC’s breakdowns to e.g. breakdowns of banks or other financial institutions, it’s clear that **there’s room for much more transparency**. Take a look at e.g. JP Morgan’s breakdown: [https://am.jpmorgan.com/us/en/asset-management/adv/products/jpmorgan-prime-money-market-fund-morgan-4812a2702#/portfolio](https://am.jpmorgan.com/us/en/asset-management/adv/products/jpmorgan-prime-money-market-fund-morgan-4812a2702#/portfolio) > > This breakdown includes a lot of more details. You can check the issuer, market value, CUSIP number, effective maturity and so on **for each asset**. This kind of information is absent in USDC’s breakdowns. > > ​ > > **There are more transparent stablecoins and stablecoins that are fully backed by cash** > > There are other stablecoins which are transparent and release independent, monthly audit reports about their backing. But what is more important – **there are stablecoins that are fully backed by cash**. Gemini USD (GUSD) or TrueUSD (TUSD) are two examples. \[8\] > > Also, Tether is often criticized for being a very small company with very few employees and yet managing billions in assets. However, **Center had only one employee** since December 2020 to March 2021 – its CEO. Currently, it hires 6 people. \[9\] > > ​ > > **Regulatory risk** > > Recently, regulatory activities have been accelerating. Gary Gensler, the head of the Security and Exchanges Commission (SEC) has asked for more authority to regulate cryptocurrency with the focus on stablecoins. > > Moreover, Fed Chairman Jerome Powell has said that a U.S. **central bank digital currency could eliminate the need for stablecoins like USDC**. And since USDC is a centralized stablecoin, a regulatory crackdown and a US CBDC could drive out USDC. > > **\_\_\_\_\_\_\_\_\_\_** > > **^(Sources:)** > > ^(\[1\]) [^(https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf)](https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf) > > ^(\[2\]) [^(https://en.wikipedia.org/wiki/USD\\Coin)](https://en.wikipedia.org/wiki/USD\Coin) > > ^(\[3\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[4\]) [^(https://www.coindesk.com/markets/2020/07/08/circle-confirms-freezing-100k-in-usdc-at-law-enforcements-request/)](https://www.coindesk.com/markets/2020/07/08/circle-confirms-freezing-100k-in-usdc-at-law-enforcements-request/) > > ^(\[5\]) [^(https://www.centre.io/blog/announcing-usdc-on-ten-new-blockchain-platforms)](https://www.centre.io/blog/announcing-usdc-on-ten-new-blockchain-platforms) > > ^(\[6\]) [^(https://www.circle.com/en/multichain-usdc)](https://www.circle.com/en/multichain-usdc) > > ^(\[7\] htps://assets.ctfassets.net/jg6lo9a2ukvr/3U43d7lUPmunUNLa0f9xui/24e439e3040c92179245485ebd1b5ba1/Gemini\\Dollar\_Examination\_Report\_08-31-21.pdf) > > ^(\[8\]) [^(https://www.coindesk.com/markets/2021/07/06/circle-isnt-winning-the-stablecoin-transparency-race/)](https://www.coindesk.com/markets/2021/07/06/circle-isnt-winning-the-stablecoin-transparency-race/) > > ^(\[9\]) [^(https://www.coindesk.com/business/2021/08/30/centre-consortium-hires-six-employees-including-former-circle-robinhood-executives/)](https://www.coindesk.com/business/2021/08/30/centre-consortium-hires-six-employees-including-former-circle-robinhood-executives/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2moj/top_10_usd_coin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xta3ma/daily_general_discussion_october_2_2022_gmt0/).

CointestAdmin

#USDC Pro-Arguments Below is an argument written by Blendzi0r which won 1st place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > First published on: [30.09.2021](https://www.reddit.com/r/CryptoCurrency/comments/og2jo1/comment/hewg10a/?utm_source=share&utm_medium=web2x&context=3) > > Last edited on: 31.03.2021 > > # Intro > > USD Coin (USDC) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDC is currently the second largest stablecoin. ^(\[1\], \[2\], \[3\]) > > # Pros > > **It’s backed mostly by cash and cash equivalents** > > It must be admitted that Tether has improved its reserves a lot since their first report and their latest breakdown looks much better as USDT is now backed by cash and cash equivalents in around 85%, but USDC is still ahead as its **reserves are backed by cash and cash equivalents in 92%**. There are also many more questions in regards to the credibility of Tether’s reports. ^(\[4\], \[5\]) And USDC may soon leave Tether far behind as Circle, the company that issues and backs USDC, stated that it wants the reserves to consist only of cash, cash equivalents and U.S. Treasury bonds in the near future. ^(\[6\]) > > What the stablecoin reserves consist of is extremely important for liquidity. If a lot of people decided to cash out at the same time and there was no liquidity it could end in a disaster for the whole market. > > ​ > > **It’s partnered with Coinbase, Visa and others** > > Circle has partnered with Coinbase and together they founded a consortium named Centre that governs USDC. Circle has also partnered with banking institutions, including Signature Bank and Visa. The companies that invested in Circle include **Goldman Sachs**, Digital Currency Group (**Grayscale** Investments), **Fidelity** and **FTX**. > > It is also worth mentioning that Circle wants to follow in the footsteps of their partners (Coinbase) and also become a publicly traded company, which would add even more credibility to USDC. ^(\[7\]) > > ​ > > **It’s transparent** > > USDC is transparent in terms of its financial operations. It follows the US laws closely. It is also **audited by Grant Thornton, LLP every month** and monthly reports can be found on the [Centre Consortium’s website](https://www.centre.io/usdc-transparency). The reports, of course, include information on USDC reserves. > > ​ > > **It’s growing rapidly** > > At the beginning of the year, USDT had a 5 times bigger market cap than USDC ($20B vs. $4B). In March2021, this difference is much smaller and USDC has almsot 2/3 of the USDT's amrket cap. One can argue that this difference is still significant but be aware that **between April 2021 and April 2022 market cap of USDC grew by 400% while Tether’s market cap grew by 100%.** > > Also, while USDT’s daily volume decreased, USDC’s volume is on a rise. > > ​ > > **Coinsmart replaces Tether with USDC** > > On September 15, 2021, Coinsmart, Canadian cryptocurrency exchange, delisted USDT and adopted USDC instead ^(\[8\]). As regulators take a closer look at stablecoins, this trend might continue and **more entities might drop Tether in favor of a more transparent stablecoins.** > > ​ > > **USDC is centralized. But is it so bad in the case of a stablecoin?** > > Those who criticize USDC and other centralized stablecoins often give the example of DAI which in their opinion is decentralized. There is no question about USDC being dependent on Centre, but it must be said that DAI, on the other hand, is heavily dependent on USDC - more than half of DAI is generated by USDC collateral and collateralizetion against Centre’s stablecoin is more than 25%. ^(\[10\]) > > Decentralization is essential for cryptocurrency. But so is replacing fiat. So, is decentralization that important in the case of a stablecoin anyway? > > \_\_\_\_\_\_\_\_\_\_\_ > > **^(Sources:)** > > ^(\[1\]) [^(https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf)](https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf) > > ^(\[2\]) [^(https://en.wikipedia.org/wiki/USD\\Coin)](https://en.wikipedia.org/wiki/USD\Coin) > > ^(\[3\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[4\]) [^(https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en)](https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en) > > ^(\[5\]) [^(https://tether.to/wp-content/uploads/2021/08/tether\\assuranceconsolidated\_reserves\_report\_2021-06-30.pdf)](https://tether.to/wp-content/uploads/2021/08/tether\assuranceconsolidated_reserves_report_2021-06-30.pdf) > > ^(\[6\]) [^(https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html)](https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html) > > ^(\[7\]) [^(https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/)](https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/) > > ^(\[8\]) [^(https://nitter.net/CoinSmart/status/1433472681626722309)](https://twitter.com/CoinSmart/status/1433472681626722309) > > ^(\[9\]) [^(https://www.coinsmart.com/blog/what-is-usdc/)](https://www.coinsmart.com/blog/what-is-usdc/) > > ^(\[10\]) [^(https://daistats.com/#/)](https://daistats.com/#/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestAdmin

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.

CointestAdmin

#USDC Con-Arguments Below is an argument written by madpanda94 which won 3rd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > My analysis comes from a post from 1 month ago written by me [https://www.reddit.com/r/CryptoCurrency/comments/pkita5/knowyourcrypto\_8\_september\_8\_2021\_usd\_coin\_usdc/](https://www.reddit.com/r/CryptoCurrency/comments/pkita5/knowyourcrypto_8_september_8_2021_usd_coin_usdc/) > > # What is it? > > USD Coin is a stable coin, which is a cryptocurrency that has the same value as a classic currency, in this case the US dollar. It is a similar project, in several ways, to other stable coins. It is also the stable coin managed directly by the Coinbase and Coinbase PRO exchanges, one of the most important exchanges in the world. USD Coin, as it should be more than clear from the name, is pegged to the dollar. What does this mean? It means that the value of a USDC token will always be equal to the value of one dollar. We will always be able to convert (we will see the special cases later) a token of this type into dollars. As we can then see on the main markets that change it, the price can fluctuate very slightly with respect to that of the dollar, generally in the order of thousandths of a percentage. These are very small variations that are mostly dependent on the small inefficiencies that can be created on the market. Perhaps one of the best qualities of USDC is that it is controlled by a consortium, in which partecipate several players in the cryptocurrency industry. It was in fact founded by Circle, and today also hosts the popular Coinbase exchange, and the mining company Bitmain, which is one of the largest investors in Circle. An internal project? No. A project that today has behind it the most serious groups circulating in the world of cryptocurrencies. > > > # How does it work? > > Like all stable coins, USD Coin also has as its main use to act as a counter value on high-frequency exchanges, obviously being tokenized. Therefore, its first use is to act as a counterparty in the negotiations that take place within the main exchanges. Coinbase aims to use it as a means of payment, offering free wallets and above all the possibility for everyone to exchange a crypto with a stable value expressed in dollars without the delays and costs that are instead connected to classic banking. USD Coin is a ERC-20 token, which is a token that is compatible with the Ethereum blockchain. A choice of this type has proved to be a winning one over time because the Ethereum network today offers reliability and allows this stable token, USDC, to be used in many decentralized finance projects. USDC is not mined, that means it is not created by solving very complicated algorithmic calculations. In fact this product is issued on demand. Anyone who buys USDC from Coinbase will have new ones delivered and never released. The doubt in this case is that Coinbase, as well as the other agents involved in the project, can issue more money than they will actually be able to convert one day. This problem can be overcome, provided that the exchange actually has US dollars or equivalent in cash. > > > # Where to store it? > > The best hot wallets for USD Coin are Coinbase Wallet, TrustWallet and Atomic Wallet. If you want more security, a cold storage like Ledger or Trezor is the right choice. > > > # Pros&Cons > > \*DISCLAIMER\* These lists are subjective, it depends from person to person > > **Pros** > > > 1. Solid backers > > 2. Useful > > 3. Future projects > > **Cons** > > 4. High competition ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pz48y3/rcc_cointest_top_10_usd_coin_conarguments_october/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xta3ma/daily_general_discussion_october_2_2022_gmt0/).

CointestAdmin

#USDC Pro-Arguments Below is an argument written by Blendzi0r which won 1st place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > First published on: [30.09.2021](https://www.reddit.com/r/CryptoCurrency/comments/og2jo1/comment/hewg10a/?utm_source=share&utm_medium=web2x&context=3) > > Last edited on: 31.03.2021 > > # Intro > > USD Coin (USDC) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDC is currently the second largest stablecoin. ^(\[1\], \[2\], \[3\]) > > # Pros > > **It’s backed mostly by cash and cash equivalents** > > It must be admitted that Tether has improved its reserves a lot since their first report and their latest breakdown looks much better as USDT is now backed by cash and cash equivalents in around 85%, but USDC is still ahead as its **reserves are backed by cash and cash equivalents in 92%**. There are also many more questions in regards to the credibility of Tether’s reports. ^(\[4\], \[5\]) And USDC may soon leave Tether far behind as Circle, the company that issues and backs USDC, stated that it wants the reserves to consist only of cash, cash equivalents and U.S. Treasury bonds in the near future. ^(\[6\]) > > What the stablecoin reserves consist of is extremely important for liquidity. If a lot of people decided to cash out at the same time and there was no liquidity it could end in a disaster for the whole market. > > ​ > > **It’s partnered with Coinbase, Visa and others** > > Circle has partnered with Coinbase and together they founded a consortium named Centre that governs USDC. Circle has also partnered with banking institutions, including Signature Bank and Visa. The companies that invested in Circle include **Goldman Sachs**, Digital Currency Group (**Grayscale** Investments), **Fidelity** and **FTX**. > > It is also worth mentioning that Circle wants to follow in the footsteps of their partners (Coinbase) and also become a publicly traded company, which would add even more credibility to USDC. ^(\[7\]) > > ​ > > **It’s transparent** > > USDC is transparent in terms of its financial operations. It follows the US laws closely. It is also **audited by Grant Thornton, LLP every month** and monthly reports can be found on the [Centre Consortium’s website](https://www.centre.io/usdc-transparency). The reports, of course, include information on USDC reserves. > > ​ > > **It’s growing rapidly** > > At the beginning of the year, USDT had a 5 times bigger market cap than USDC ($20B vs. $4B). In March2021, this difference is much smaller and USDC has almsot 2/3 of the USDT's amrket cap. One can argue that this difference is still significant but be aware that **between April 2021 and April 2022 market cap of USDC grew by 400% while Tether’s market cap grew by 100%.** > > Also, while USDT’s daily volume decreased, USDC’s volume is on a rise. > > ​ > > **Coinsmart replaces Tether with USDC** > > On September 15, 2021, Coinsmart, Canadian cryptocurrency exchange, delisted USDT and adopted USDC instead ^(\[8\]). As regulators take a closer look at stablecoins, this trend might continue and **more entities might drop Tether in favor of a more transparent stablecoins.** > > ​ > > **USDC is centralized. But is it so bad in the case of a stablecoin?** > > Those who criticize USDC and other centralized stablecoins often give the example of DAI which in their opinion is decentralized. There is no question about USDC being dependent on Centre, but it must be said that DAI, on the other hand, is heavily dependent on USDC - more than half of DAI is generated by USDC collateral and collateralizetion against Centre’s stablecoin is more than 25%. ^(\[10\]) > > Decentralization is essential for cryptocurrency. But so is replacing fiat. So, is decentralization that important in the case of a stablecoin anyway? > > \_\_\_\_\_\_\_\_\_\_\_ > > **^(Sources:)** > > ^(\[1\]) [^(https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf)](https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf) > > ^(\[2\]) [^(https://en.wikipedia.org/wiki/USD\\Coin)](https://en.wikipedia.org/wiki/USD\Coin) > > ^(\[3\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[4\]) [^(https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en)](https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en) > > ^(\[5\]) [^(https://tether.to/wp-content/uploads/2021/08/tether\\assuranceconsolidated\_reserves\_report\_2021-06-30.pdf)](https://tether.to/wp-content/uploads/2021/08/tether\assuranceconsolidated_reserves_report_2021-06-30.pdf) > > ^(\[6\]) [^(https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html)](https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html) > > ^(\[7\]) [^(https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/)](https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/) > > ^(\[8\]) [^(https://nitter.net/CoinSmart/status/1433472681626722309)](https://twitter.com/CoinSmart/status/1433472681626722309) > > ^(\[9\]) [^(https://www.coinsmart.com/blog/what-is-usdc/)](https://www.coinsmart.com/blog/what-is-usdc/) > > ^(\[10\]) [^(https://daistats.com/#/)](https://daistats.com/#/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestAdmin

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.

Roy_Playz

Matic is the best L2 out there. USDC & ETH on Polygon is top tier. 1 Matic = 1 Matic.

MonsterMash789

All jokes aside I find it's better not to unless the other person is genuinely interested in it, often friends in tech will follow it a bit more for instance The mainstream news tends to lean more negatively towards crypto it can seem, although in some cases this is valid When Terra and its stablecoin failed I talked with friends that extrapolated that all stablecoins are scams/will fail. Although with the backing and auditing of USDC it's probably safer than most stock equities. But it's not worth the argument sometimes, pick your battles, not worth spoiling brunch Or since there have been a lot of ponzi schemes and rug pulls (and documentaries on this) again people will assume it's the same for all crypto assets Also since it is speculative, even though I've invested in it, I can't say for sure what will happen. So at best I'd say do it for fun with assets you can burn, with the potential for some upside

OneThatNoseOne

BTW. They cross chain bridge allows instant transfers between Arbitrum Nova and Ethereum. Unlike to official bridge Arb One and Nova bridge that takes 5 mines one way and 8 days the other. So instant go Moons->USDC/ETH and instant moon liquidity baby!

yatxel122

Will this help the USDC regain its former trust?

Visible-Ad743

BS. I literally just sent $250 from my bank to CB. I now have $250 more USDC. This was exactly 10 minutes ago.

CointestAdmin

#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

CointestAdmin

#USDC Con-Arguments Below is an argument written by madpanda94 which won 3rd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > My analysis comes from a post from 1 month ago written by me [https://www.reddit.com/r/CryptoCurrency/comments/pkita5/knowyourcrypto\_8\_september\_8\_2021\_usd\_coin\_usdc/](https://www.reddit.com/r/CryptoCurrency/comments/pkita5/knowyourcrypto_8_september_8_2021_usd_coin_usdc/) > > # What is it? > > USD Coin is a stable coin, which is a cryptocurrency that has the same value as a classic currency, in this case the US dollar. It is a similar project, in several ways, to other stable coins. It is also the stable coin managed directly by the Coinbase and Coinbase PRO exchanges, one of the most important exchanges in the world. USD Coin, as it should be more than clear from the name, is pegged to the dollar. What does this mean? It means that the value of a USDC token will always be equal to the value of one dollar. We will always be able to convert (we will see the special cases later) a token of this type into dollars. As we can then see on the main markets that change it, the price can fluctuate very slightly with respect to that of the dollar, generally in the order of thousandths of a percentage. These are very small variations that are mostly dependent on the small inefficiencies that can be created on the market. Perhaps one of the best qualities of USDC is that it is controlled by a consortium, in which partecipate several players in the cryptocurrency industry. It was in fact founded by Circle, and today also hosts the popular Coinbase exchange, and the mining company Bitmain, which is one of the largest investors in Circle. An internal project? No. A project that today has behind it the most serious groups circulating in the world of cryptocurrencies. > > > # How does it work? > > Like all stable coins, USD Coin also has as its main use to act as a counter value on high-frequency exchanges, obviously being tokenized. Therefore, its first use is to act as a counterparty in the negotiations that take place within the main exchanges. Coinbase aims to use it as a means of payment, offering free wallets and above all the possibility for everyone to exchange a crypto with a stable value expressed in dollars without the delays and costs that are instead connected to classic banking. USD Coin is a ERC-20 token, which is a token that is compatible with the Ethereum blockchain. A choice of this type has proved to be a winning one over time because the Ethereum network today offers reliability and allows this stable token, USDC, to be used in many decentralized finance projects. USDC is not mined, that means it is not created by solving very complicated algorithmic calculations. In fact this product is issued on demand. Anyone who buys USDC from Coinbase will have new ones delivered and never released. The doubt in this case is that Coinbase, as well as the other agents involved in the project, can issue more money than they will actually be able to convert one day. This problem can be overcome, provided that the exchange actually has US dollars or equivalent in cash. > > > # Where to store it? > > The best hot wallets for USD Coin are Coinbase Wallet, TrustWallet and Atomic Wallet. If you want more security, a cold storage like Ledger or Trezor is the right choice. > > > # Pros&Cons > > \*DISCLAIMER\* These lists are subjective, it depends from person to person > > **Pros** > > > 1. Solid backers > > 2. Useful > > 3. Future projects > > **Cons** > > 4. High competition ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pz48y3/rcc_cointest_top_10_usd_coin_conarguments_october/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xta3ma/daily_general_discussion_october_2_2022_gmt0/).

CointestAdmin

#USDC Pro-Arguments Below is an argument written by ExchangeEnough7821 which won 2nd place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > What is USD coin? > > USD coin is a stablecoin, first announced in May 2018. It is developed by the Circle Consortium - a partnership between the company Circle and the exchange Coinbase. Circle and Coinbase are responsible for issuing the USD coin, and Centre develops the technology behind and the framework of it. Circle is a company founded in 2013 by Jeremy Allaire and Sean Neville, and is an official Money Transmitter – it must comply with federal law and regulations. Now, it has over 60 partners and is continuing to expand. > > Uses of USD coin: > > • Avoid inflation in countries with weak economies > > • Send money around the world without large fees, securely and instantly > > • Short other coins without having to convert to fiat > > • Buys things in crypto based apps and websites > > Pros of USD coin: > > • USD coin has many high value and reliable partneships with large firms, that gives the project stability and credibility. These include Goldman Sachs, Bitmain and IDG Capital, and these high profile links mean USD coin can be seen as trustworthy > > • Transfers with USD coin only take roughly 15 seconds, compared to the minutes it takes for a fiat wire transfer or similar – this means it has a use case in transferring money across the globe quickly > > • The cost of money transfers remains the same no matter the size – it is the Ethereum gas fee-, and this means for high value transfers it can be cheaper than other fiat versions, which may take a percentage > > • Compared to the US Dollar, you can earn a much higher interest on the coin with decentralised apps, so is more profitable when holding than fiat currency. > > • It is backed 1 to 1 with the US dollar – one of the strongest and most reliable currencies in the world, so is also a very reliable stablecoin. > > • USD coin can be used by those who don’t have access to traditional bank account due to age or location, so can still cash out other coins into an exchange > > *”What is USD coin” and “Uses of USD coin” is copied between both of my USD pros, and USD cons, but I wrote it myself* ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestAdmin

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.

Zzzoem

Opensea is centralized like USDC and USDT.

SigSalvadore

USDT, USDC, BUSD, all in the top 10 too.

pbjclimbing

Their uptime page says ACH withdrawals and deposits are down. Other methods like PayPal are working. You can buy, sell, and transfer crypto just fine. If you are worried transfer your USD to USDC and transfer to your crypto wallet.

pbjclimbing

You can transfer crypto just fine. The not your keys not coins statement doesn’t make sense. The ACH fiat on and off ramp is broken. You can put all your crypto in USDC and transfer it or transfer all your crypto off without an issue.

CointestAdmin

#USDC Con-Arguments Below is an argument written by ExchangeEnough7821 which won 2nd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is USD coin (USDC)?** > USD coin is a stablecoin, first announced in May 2018. It is developed by the Circle Consortium - a partnership between the company Circle and the exchange Coinbase. Circle and Coinbase are responsible for issuing the USD coin, and Centre develops the technology behind and the framework of it. Circle is a company founded in 2013 by Jeremy Allaire and Sean Neville, and is an official Money Transmitter – it must comply with federal law and regulations. Now, it has over 60 partners and is continuing to expand. > Uses of USD coin: > • Avoid inflation in countries with weak economies > • Send money around the world without large fees, securely and instantly > • Short other coins without having to convert to fiat > • Buys things in crypto based apps and websites > > > **Cons of USD coin** : > • Although the cost of transferring USD coin may be less than if it were fiat, when the Ethereum network is congested it can get very expensive to transfer even a small amount > > • Although USD coin can be use in some DeFi apps and games, there are very few day-to-day uses for USDC – there is almost no shops, restaurants or companies that will accept it in everyday circumstances, reducing its usability > > • Staking USDC can be risky compared to holding fiat in a bank – banks have FDIC insurance and your money is almost guaranteed to be safe, albeit with a lower interest rate, but there are many examples of DeFi apps that have been hacked with funds drained so your money is in more danger > > • Another issue that may put people off from USD coin is that it is centralised – it is governed by Circle, so it the reserves cannot be verified, unlike decentralised options like DAI and SameUSD > > • Although transferrin USD coin is very fast, certain fiat services -most notably PayPal – have even shorter transfer times, sometimes 1 second or less > > • Even though crypto is getting more mainstream with simpler apps, it can be difficult for many to understand how to use and stake this coin to achieve its full potential, and if it is held in private wallets and the seed key is forgotten there is nothing anyone can do to retrieve the funds, unlike apps like PayPal > > \*”What is USD coin” and “Uses of USD coin” is copied between both of my USD pros, and USD cons, but I wrote it myself\* ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2moj/top_10_usd_coin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xta3ma/daily_general_discussion_october_2_2022_gmt0/).

CointestAdmin

#USDC Pro-Arguments Below is an argument written by I-play-too-much-PUBG which won 3rd place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > USDC is the best stablecoin and here is why. > > > > > > > 1. USDC is transparent. Nothing is hidden in USDC due to its publicly verifiable attestations. This means it is much harder for criminal activity such as money laundering to occur. > > > > > 2. USDC is safe. USDC is backed by (debatably) the strongest economy in the world unlike some other stablecoins such as BUSD or DAI. USDC is only truly comparable to other US dollar backed coins such as USDT. > > > > > With that argument someone might say that USDT is also backed by the US dollar. With that, I follow with another argument. > > > > > 3. Due to the transparency and security of USDC, there is little to no “fairy money” or creation of cryptocurrency without being backed by anything. This is the strongest reason why USDC is superior to USDT. > > > > > > > 4. Although USDC is backed by the US dollar (centralized) it actually supports defi. USDC is an ERC-20 based token therefore it can be used by any dApp built on the ethereum network. > > > > > > In conclusion, USDT is currently used more and has a higher market cap than USDC, but USDC has stronger infrastructure and is more likely to be used largely in the future due to it being in support of defi. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestAdmin

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.

pm_me_your_pooptube

I’m with you there. Plus, with the changes to the COSMOS ecosystem, we will be able to get USDC rewards for staking ATOM starting next year. How cool is that?

MaeronTargaryen

Maybe my buy order will get filled before my USDC is worth less than £50 then

Dwaas_Bjaas

They’re not, but without them DeFi would not be what it is now. A lot of liquidity pools rely on USDT and USDC availability

Advanced_Error_9312

Correct me if im wrong but USDT and USDC are not defi.

MaeronTargaryen

Lol, I have some USDC on an exchange because of a buy order, and the value in GBP has gone down 5% compared to when I bought it a few days ago

Dwaas_Bjaas

You can “freeze” crypto by ordering an exchange to restrict access to users Another way to freeze crypto is by coding it into the crypto. Examples of this is USDT and USDC. These companies are able to lock the USDC/USDT in your wallet without you being able to do anything about it

CointestAdmin

#Bitcoin Con-Arguments Below is an argument written by bkcrypt0 which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > # Bitcoin is failing its original mission, and institutional interest is going to make things worse. > > **Background** > > Satoshi Nakamoto was a financial revolutionary out to counter the fiat money presses that destroy a currency's value with inflation (looking at you Turkey and the U.S.) The method—create a currency with a fixed supply, mined liked gold to make it scarce, and digitally transferable anywhere in the world between any parties. > > **Lack of Stability** > > Bitcoin can't be used as a global currency to replace fiat and eliminate politicized money printing because it has to hold its value steady over time. > > Why? > > People work for dollars, euros, yen, or yuan because there is relative stability in their paychecks from week to week. Their food, rent/mortgage, clothing, energy costs are also relatively stable (inflation is the cost for using that particular currency, but it beats a 50% drop in value over the course of a few months, and most inflation around the world isn't as bad as Turkey or Venezuela.) > > Imagine being paid a flat 1BTC / year for a particular job. But you live in the U.S. and the value of that BTC just dropped over the course of the year by 50%. Your lease is fixed over 12 months. Your food costs are the same or maybe even higher. Not only do you still get hit with local inflation, your buying power just dropped by half. > > This is why over $155B\* have flowed into stable coins like USDT, USDC, BUSD, UST, and DAI) > > **Lack of Accountability** > > The relatively anonymous transfer of value between parties was supposed to be a positive aspect of bitcoin. Your money, so do what you want with it. The problem is, there are a lot of other people that also want anonymity — human traffickers, dangerous drug smugglers, crime syndicates, tax evaders. Sure they can also use USD (and most of them do), but they are also traceable if they enter the global financial system. > > Making it easier for criminals to evade authorities makes everyone less safe. And sure, no one likes to pay taxes, but consider the alternative. Roads, schools, social services, some hospitals, police and fire departments, they all rely on taxes. > > **Lack of security** > > Unlike gold, which is pretty much indestructible, Bitcoin holdings depend on keeping seed phrases secure. If there were a house fire a gold bar might melt, but it can be reformed. A hardware wallet will be destroyed and any seed phrases stored on paper will be gone. That's part of gold's appeal as a store of value. > > Also, were there to be an internet outage in any widespread way, Bitcoin is useless as a transaction currency (part of the appeal of physical paper money and metal coins.) While unlikely, this scenario speaks to the lack of overall security in Bitcoin as a means of exchange (it has other benefits like cryptographic security, but its lack of physicality poses problems with public perception, and practical uses.) > > **Acts like fiat, moves like fiat . . .** > > Bitcoin remains highly correlated to traditional finance markets (two recent readings were the highest they've been -- see link below) and doesn't exactly act as a hedge against inflation when it plummets in the face of, well, high inflation. > > What this shows is that big money is controlling Bitcoin (and by association the rest of crypto) by reacting in the same risk-off reaction when inflation flares up. > > It goes something like this: > > * When inflation rises, the Fed tightens money supply to slow things down. > * Big money flees from riskier assets like company stock (they likely won't be as profitable in a high inflation world) > * Stock prices drop \[and here's the problem\] > * Money does not flow INTO crypto as a hedge against this risk, it also flees. > > **Conclusion** > > Fighting fiat money printing excesses was never going to be easy, but as with most revolutions, unintended consequences often derail the original vision. > > For one, government policies can avert the worst of political impulses. That doesn't require a wholesale financial market revolution. > > U.S. inflation has also been remarkably low for well over two decades. It was a once in a century global pandemic that forced a massive print run of dollars. > > Bitcoin has also become just another a plaything for the rich, a commodity to be bought and sold for profit rather than the antidote to centralized money creation. And because even larger stacks of fiat are on the sidelines waiting to jump in, volatility is going to get even worse with big swings as fund managers chase and take profits. > > None of this means Bitcoin has no value in global finance. It just means it isn't going to serve the purpose as originally intended. > > \------------------ > > * For Bitcoin correlation to stocks see: [https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes](https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes) > * Stablecoin totals for the five mentioned above were calculated on 1/11/21 from CoinMarketCap - [https://coinmarketcap.com/](https://coinmarketcap.com/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2lpo/top_10_bitcoin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xta3ma/daily_general_discussion_october_2_2022_gmt0/).

OrdainedPuma

Psh. Should have bought USDC if you wanted to preserve your wealth. It's in the *name*. STABLE coin. Hello!?

Stoopiddogface

How long is a piece of string? The APR is the same regardless... Id say 10, 20 , 50... Im chasing down 100 (I have other positions, and pools etc)... Now, 50 would put you deep into airdrop minimums and with a good airdrop... Back in winter 10 ATOM was a minimum, now id say that more is your buddy if youre chasing airdrops.... Worthwhile? Thats too hard to say... The thing is, theres a lot of ways to pull APRs out of projects.... Heres what Im doing/been doing... Im mostly into ATOM, JUNO, EVMOS. I also do some poolng on osmosis... I get staking rewards from my positions and I swap them to USDC on osmosis. When we drop I buy ATOM with all my staking rewards. (right now were in a dip so instead of converting staking rewards, Im accumulating them till price recovers when Ill swap them and wait for next red days)

sfgisz

Tether is being silently removed it seems. Observe the market cap of USDT and USDC. Tether should be overtaken in some months and then quietly become less of a threat.

CointestAdmin

#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

jamesc5z

I actually do spend crypto technically - just USDC though on my CB card and only to pay my MasterCard with it to double up cashback rewards on the two cards :)

CointestAdmin

#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

CointestAdmin

#Regulation Pro-Arguments Below is an argument written by mic_droo which won 2nd place in the Regulation Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round that I deleted by accident but can be found [here](https://web.archive.org/web/20211118154440/https://reddit.com/r/CryptoCurrency/comments/pfoogx/rcc_cointest_general_concepts_regulation/hl4r06e/). > > While I think regulation is mostly seen negatively in crypto, I would argue some level of regulation could have a positive effect on both safety aspects and adoption: > > * One of the biggest swords of Damocles hanging over crypto’s head are **stablecoins** and their backings. Of course [Tether is notoriously shady](https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether), but other stablecoins like [USDC have also lied](https://www.nytimes.com/2021/09/17/business/economy/federal-reserve-virtual-currency-stablecoin.html) in the past about how they are backed. One of these coins – both in the top 10 – imploding would be a catastrophe, both for those holding them and crypto in general, as it would definitely cause a huge crash and loss of trust. Government regulation, making sure that those coins are backed and [preventing retailers from issuing their own coins](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) could make crypto a safer place > > * **DeFi** has been called the [wild west of crypto](https://www.cnbc.com/2021/11/04/defi-the-wild-west-of-crypto-is-set-to-face-regulatory-crackdown.html) for a reason. DApps can make crazy promises on, for example, how much interest you can earn on a loan – but they don’t have to be open about the risks, even though [coding errors and hacks with grave consequences are far from rare](https://www.reuters.com/article/uk-crypto-currencies-lending-insight/boom-or-bust-welcome-to-the-freewheeling-world-of-crypto-lending-idUKKBN25M0GQ). While regulating DeFi without making a mockery out of what it’s trying to do is not an easy task, [there definitely are ideas on how to approach this](https://www.coindesk.com/policy/2021/11/16/a-few-unorthodox-thoughts-on-defi-regulation/) > > * **Regulation could prevent tax evasion**, which would be both positive because governments would receive more money that they could use for the public good and because it would make them less anti-crypto. Governments [could for example force exchanges to establish KYC-procedures](https://www.fool.com/the-ascent/cryptocurrency/articles/do-we-need-more-crypto-regulation-two-sides-of-the-story/) and only approve exchanges that ask for KYC and store it securely. > > * [**Most (young) traders don’t even realize crypto isn’t regulated**](https://www.cnbc.com/2021/10/19/young-traders-treat-crypto-investing-like-a-competition-fca-says.html), meaning that they both might underestimate their risk when investing and wouldn’t mind regulation. > > * **Crypto currently still seems shady to a lot of people**. This might be somewhat subjective, but can you blame them? Scams are happening left and right, it’s very hard for a beginner to tell which exchanges are trustworthy and which ones aren’t (and let’s be honest, even some that are regarded as good look shady as hell, looking at you KuCoin) and those BTC ATMs with their absurd and non-transparent fees standing around at the most absurd places don’t help either… introducing regulation might make things safer and increase the trust people have in crypto in general. [Mid last year, only 14% of Americans owned crypto](https://www.fool.com/the-ascent/research/study-americans-cryptocurrency/) and I’m sure it is much lower in most other countries. To increase this number significantly, crypto would definitely have to look more trustworthy, which can only be done by some degree of regulation > > * Finally, it seems likely that [more institutions would get into crypto](https://money.usnews.com/investing/cryptocurrency/articles/will-cryptocurrency-regulation-affect-crypto-prices) if it was regulated, bringing more capital into the ecosystem. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/r6vv9u\/general_concepts_round_regulation_proarguments/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_government_regulation) to find arguments on this topic in other rounds.

CointestAdmin

#Bitcoin Con-Arguments Below is an argument written by bkcrypt0 which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > # Bitcoin is failing its original mission, and institutional interest is going to make things worse. > > **Background** > > Satoshi Nakamoto was a financial revolutionary out to counter the fiat money presses that destroy a currency's value with inflation (looking at you Turkey and the U.S.) The method—create a currency with a fixed supply, mined liked gold to make it scarce, and digitally transferable anywhere in the world between any parties. > > **Lack of Stability** > > Bitcoin can't be used as a global currency to replace fiat and eliminate politicized money printing because it has to hold its value steady over time. > > Why? > > People work for dollars, euros, yen, or yuan because there is relative stability in their paychecks from week to week. Their food, rent/mortgage, clothing, energy costs are also relatively stable (inflation is the cost for using that particular currency, but it beats a 50% drop in value over the course of a few months, and most inflation around the world isn't as bad as Turkey or Venezuela.) > > Imagine being paid a flat 1BTC / year for a particular job. But you live in the U.S. and the value of that BTC just dropped over the course of the year by 50%. Your lease is fixed over 12 months. Your food costs are the same or maybe even higher. Not only do you still get hit with local inflation, your buying power just dropped by half. > > This is why over $155B\* have flowed into stable coins like USDT, USDC, BUSD, UST, and DAI) > > **Lack of Accountability** > > The relatively anonymous transfer of value between parties was supposed to be a positive aspect of bitcoin. Your money, so do what you want with it. The problem is, there are a lot of other people that also want anonymity — human traffickers, dangerous drug smugglers, crime syndicates, tax evaders. Sure they can also use USD (and most of them do), but they are also traceable if they enter the global financial system. > > Making it easier for criminals to evade authorities makes everyone less safe. And sure, no one likes to pay taxes, but consider the alternative. Roads, schools, social services, some hospitals, police and fire departments, they all rely on taxes. > > **Lack of security** > > Unlike gold, which is pretty much indestructible, Bitcoin holdings depend on keeping seed phrases secure. If there were a house fire a gold bar might melt, but it can be reformed. A hardware wallet will be destroyed and any seed phrases stored on paper will be gone. That's part of gold's appeal as a store of value. > > Also, were there to be an internet outage in any widespread way, Bitcoin is useless as a transaction currency (part of the appeal of physical paper money and metal coins.) While unlikely, this scenario speaks to the lack of overall security in Bitcoin as a means of exchange (it has other benefits like cryptographic security, but its lack of physicality poses problems with public perception, and practical uses.) > > **Acts like fiat, moves like fiat . . .** > > Bitcoin remains highly correlated to traditional finance markets (two recent readings were the highest they've been -- see link below) and doesn't exactly act as a hedge against inflation when it plummets in the face of, well, high inflation. > > What this shows is that big money is controlling Bitcoin (and by association the rest of crypto) by reacting in the same risk-off reaction when inflation flares up. > > It goes something like this: > > * When inflation rises, the Fed tightens money supply to slow things down. > * Big money flees from riskier assets like company stock (they likely won't be as profitable in a high inflation world) > * Stock prices drop \[and here's the problem\] > * Money does not flow INTO crypto as a hedge against this risk, it also flees. > > **Conclusion** > > Fighting fiat money printing excesses was never going to be easy, but as with most revolutions, unintended consequences often derail the original vision. > > For one, government policies can avert the worst of political impulses. That doesn't require a wholesale financial market revolution. > > U.S. inflation has also been remarkably low for well over two decades. It was a once in a century global pandemic that forced a massive print run of dollars. > > Bitcoin has also become just another a plaything for the rich, a commodity to be bought and sold for profit rather than the antidote to centralized money creation. And because even larger stacks of fiat are on the sidelines waiting to jump in, volatility is going to get even worse with big swings as fund managers chase and take profits. > > None of this means Bitcoin has no value in global finance. It just means it isn't going to serve the purpose as originally intended. > > \------------------ > > * For Bitcoin correlation to stocks see: [https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes](https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes) > * Stablecoin totals for the five mentioned above were calculated on 1/11/21 from CoinMarketCap - [https://coinmarketcap.com/](https://coinmarketcap.com/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2lpo/top_10_bitcoin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xsqkga/monthly_optimists_discussion_october_2022/).

CointestAdmin

#Bitcoin Con-Arguments Below is an argument written by bkcrypt0 which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > # Bitcoin is failing its original mission, and institutional interest is going to make things worse. > > **Background** > > Satoshi Nakamoto was a financial revolutionary out to counter the fiat money presses that destroy a currency's value with inflation (looking at you Turkey and the U.S.) The method—create a currency with a fixed supply, mined liked gold to make it scarce, and digitally transferable anywhere in the world between any parties. > > **Lack of Stability** > > Bitcoin can't be used as a global currency to replace fiat and eliminate politicized money printing because it has to hold its value steady over time. > > Why? > > People work for dollars, euros, yen, or yuan because there is relative stability in their paychecks from week to week. Their food, rent/mortgage, clothing, energy costs are also relatively stable (inflation is the cost for using that particular currency, but it beats a 50% drop in value over the course of a few months, and most inflation around the world isn't as bad as Turkey or Venezuela.) > > Imagine being paid a flat 1BTC / year for a particular job. But you live in the U.S. and the value of that BTC just dropped over the course of the year by 50%. Your lease is fixed over 12 months. Your food costs are the same or maybe even higher. Not only do you still get hit with local inflation, your buying power just dropped by half. > > This is why over $155B\* have flowed into stable coins like USDT, USDC, BUSD, UST, and DAI) > > **Lack of Accountability** > > The relatively anonymous transfer of value between parties was supposed to be a positive aspect of bitcoin. Your money, so do what you want with it. The problem is, there are a lot of other people that also want anonymity — human traffickers, dangerous drug smugglers, crime syndicates, tax evaders. Sure they can also use USD (and most of them do), but they are also traceable if they enter the global financial system. > > Making it easier for criminals to evade authorities makes everyone less safe. And sure, no one likes to pay taxes, but consider the alternative. Roads, schools, social services, some hospitals, police and fire departments, they all rely on taxes. > > **Lack of security** > > Unlike gold, which is pretty much indestructible, Bitcoin holdings depend on keeping seed phrases secure. If there were a house fire a gold bar might melt, but it can be reformed. A hardware wallet will be destroyed and any seed phrases stored on paper will be gone. That's part of gold's appeal as a store of value. > > Also, were there to be an internet outage in any widespread way, Bitcoin is useless as a transaction currency (part of the appeal of physical paper money and metal coins.) While unlikely, this scenario speaks to the lack of overall security in Bitcoin as a means of exchange (it has other benefits like cryptographic security, but its lack of physicality poses problems with public perception, and practical uses.) > > **Acts like fiat, moves like fiat . . .** > > Bitcoin remains highly correlated to traditional finance markets (two recent readings were the highest they've been -- see link below) and doesn't exactly act as a hedge against inflation when it plummets in the face of, well, high inflation. > > What this shows is that big money is controlling Bitcoin (and by association the rest of crypto) by reacting in the same risk-off reaction when inflation flares up. > > It goes something like this: > > * When inflation rises, the Fed tightens money supply to slow things down. > * Big money flees from riskier assets like company stock (they likely won't be as profitable in a high inflation world) > * Stock prices drop \[and here's the problem\] > * Money does not flow INTO crypto as a hedge against this risk, it also flees. > > **Conclusion** > > Fighting fiat money printing excesses was never going to be easy, but as with most revolutions, unintended consequences often derail the original vision. > > For one, government policies can avert the worst of political impulses. That doesn't require a wholesale financial market revolution. > > U.S. inflation has also been remarkably low for well over two decades. It was a once in a century global pandemic that forced a massive print run of dollars. > > Bitcoin has also become just another a plaything for the rich, a commodity to be bought and sold for profit rather than the antidote to centralized money creation. And because even larger stacks of fiat are on the sidelines waiting to jump in, volatility is going to get even worse with big swings as fund managers chase and take profits. > > None of this means Bitcoin has no value in global finance. It just means it isn't going to serve the purpose as originally intended. > > \------------------ > > * For Bitcoin correlation to stocks see: [https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes](https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes) > * Stablecoin totals for the five mentioned above were calculated on 1/11/21 from CoinMarketCap - [https://coinmarketcap.com/](https://coinmarketcap.com/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2lpo/top_10_bitcoin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xsqkga/monthly_optimists_discussion_october_2022/).

CointestAdmin

#Bitcoin Con-Arguments Below is an argument written by bkcrypt0 which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > # Bitcoin is failing its original mission, and institutional interest is going to make things worse. > > **Background** > > Satoshi Nakamoto was a financial revolutionary out to counter the fiat money presses that destroy a currency's value with inflation (looking at you Turkey and the U.S.) The method—create a currency with a fixed supply, mined liked gold to make it scarce, and digitally transferable anywhere in the world between any parties. > > **Lack of Stability** > > Bitcoin can't be used as a global currency to replace fiat and eliminate politicized money printing because it has to hold its value steady over time. > > Why? > > People work for dollars, euros, yen, or yuan because there is relative stability in their paychecks from week to week. Their food, rent/mortgage, clothing, energy costs are also relatively stable (inflation is the cost for using that particular currency, but it beats a 50% drop in value over the course of a few months, and most inflation around the world isn't as bad as Turkey or Venezuela.) > > Imagine being paid a flat 1BTC / year for a particular job. But you live in the U.S. and the value of that BTC just dropped over the course of the year by 50%. Your lease is fixed over 12 months. Your food costs are the same or maybe even higher. Not only do you still get hit with local inflation, your buying power just dropped by half. > > This is why over $155B\* have flowed into stable coins like USDT, USDC, BUSD, UST, and DAI) > > **Lack of Accountability** > > The relatively anonymous transfer of value between parties was supposed to be a positive aspect of bitcoin. Your money, so do what you want with it. The problem is, there are a lot of other people that also want anonymity — human traffickers, dangerous drug smugglers, crime syndicates, tax evaders. Sure they can also use USD (and most of them do), but they are also traceable if they enter the global financial system. > > Making it easier for criminals to evade authorities makes everyone less safe. And sure, no one likes to pay taxes, but consider the alternative. Roads, schools, social services, some hospitals, police and fire departments, they all rely on taxes. > > **Lack of security** > > Unlike gold, which is pretty much indestructible, Bitcoin holdings depend on keeping seed phrases secure. If there were a house fire a gold bar might melt, but it can be reformed. A hardware wallet will be destroyed and any seed phrases stored on paper will be gone. That's part of gold's appeal as a store of value. > > Also, were there to be an internet outage in any widespread way, Bitcoin is useless as a transaction currency (part of the appeal of physical paper money and metal coins.) While unlikely, this scenario speaks to the lack of overall security in Bitcoin as a means of exchange (it has other benefits like cryptographic security, but its lack of physicality poses problems with public perception, and practical uses.) > > **Acts like fiat, moves like fiat . . .** > > Bitcoin remains highly correlated to traditional finance markets (two recent readings were the highest they've been -- see link below) and doesn't exactly act as a hedge against inflation when it plummets in the face of, well, high inflation. > > What this shows is that big money is controlling Bitcoin (and by association the rest of crypto) by reacting in the same risk-off reaction when inflation flares up. > > It goes something like this: > > * When inflation rises, the Fed tightens money supply to slow things down. > * Big money flees from riskier assets like company stock (they likely won't be as profitable in a high inflation world) > * Stock prices drop \[and here's the problem\] > * Money does not flow INTO crypto as a hedge against this risk, it also flees. > > **Conclusion** > > Fighting fiat money printing excesses was never going to be easy, but as with most revolutions, unintended consequences often derail the original vision. > > For one, government policies can avert the worst of political impulses. That doesn't require a wholesale financial market revolution. > > U.S. inflation has also been remarkably low for well over two decades. It was a once in a century global pandemic that forced a massive print run of dollars. > > Bitcoin has also become just another a plaything for the rich, a commodity to be bought and sold for profit rather than the antidote to centralized money creation. And because even larger stacks of fiat are on the sidelines waiting to jump in, volatility is going to get even worse with big swings as fund managers chase and take profits. > > None of this means Bitcoin has no value in global finance. It just means it isn't going to serve the purpose as originally intended. > > \------------------ > > * For Bitcoin correlation to stocks see: [https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes](https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes) > * Stablecoin totals for the five mentioned above were calculated on 1/11/21 from CoinMarketCap - [https://coinmarketcap.com/](https://coinmarketcap.com/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2lpo/top_10_bitcoin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xsqkga/monthly_optimists_discussion_october_2022/).

coinfeeds-bot

tldr; Blockchain network Cosmos plans to roll out USDC natively on its interchain platform in January 2023. The stablecoin rollout will enable dapps to operate more efficiently and facilitate favorable liquidity flow. ATOM’s weighted sentiment metric registered a sharp uptick from 26 September to its highest monthly level on 30 September. At press time, ATOM was trading at $13.0. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

CointestAdmin

#USDC Con-Arguments Below is an argument written by Blendzi0r which won 1st place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > First published on: [30.09.2021](https://www.reddit.com/r/CryptoCurrency/comments/og2nfy/comment/hewkfxw/?utm_source=share&utm_medium=web2x&context=3) > > Last edited on: *no edits yet* > > # Intro > > USD Coin (USDC) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDC is currently the second largest stablecoin. \[1\], \[2\], \[3\] > > # Cons > > **It’s centralized** > > Decentralization is one of the core principles of crypto industry. USDC is centralized. Centre (nomen omen), the consortium that is responsible for USDC, can freeze anyone’s USDC assets whenever they want to. In 2020, they blacklisted an address and froze $100,000 in USDC in response to a request from law enforcement \[4\]. In this case, the freezing of assets was the right thing to do but nothing stops Centre from freezing assets in more controversial circumstances. > > ​ > > **It has fewer trading pairs and blockchains than tether** > > USDC announced in June 2021 that it wants to expand to 10 more blockchains in the near future \[5\]. But as of now, it’s present on 5 blockchains (Ethereum, Algorand, Solana, Stellar and Tron) whereas USDT, its main competitor, is available on 8 blockchains. \[6\] > > USDC is even more pale in comparison to USDT when it comes to the number of available trading pairs. There are barely any coins that aren’t paired with USDT, when USDC usually allows to buy only the most popular coins. > > ​ > > **Is it really that transparent?** > > Circle claimed in the past that all USD Coins are backed 1:1 against US dollar (cash). This is not the case anymore. And while people praise USDC for being more transparent than Tether and having better, more reliable reserve composition, just until recently Tether was completely nontransparent and lied about its reserves, so it’s hard to look bad when compared to Tether. > > Circle isn’t in fact that transparent. For example, they don’t disclose too much information about funds referred to as “approved investments”. **We don’t know how risky those investments are.** USDC has licenses in most of the states in the US. Some of those states have absolutely no restrictions and if Circle operates under the license from one of those states, it can invest in anything it wants. \[7\] > > Also, if you compare USDC’s breakdowns to e.g. breakdowns of banks or other financial institutions, it’s clear that **there’s room for much more transparency**. Take a look at e.g. JP Morgan’s breakdown: [https://am.jpmorgan.com/us/en/asset-management/adv/products/jpmorgan-prime-money-market-fund-morgan-4812a2702#/portfolio](https://am.jpmorgan.com/us/en/asset-management/adv/products/jpmorgan-prime-money-market-fund-morgan-4812a2702#/portfolio) > > This breakdown includes a lot of more details. You can check the issuer, market value, CUSIP number, effective maturity and so on **for each asset**. This kind of information is absent in USDC’s breakdowns. > > ​ > > **There are more transparent stablecoins and stablecoins that are fully backed by cash** > > There are other stablecoins which are transparent and release independent, monthly audit reports about their backing. But what is more important – **there are stablecoins that are fully backed by cash**. Gemini USD (GUSD) or TrueUSD (TUSD) are two examples. \[8\] > > Also, Tether is often criticized for being a very small company with very few employees and yet managing billions in assets. However, **Center had only one employee** since December 2020 to March 2021 – its CEO. Currently, it hires 6 people. \[9\] > > ​ > > **Regulatory risk** > > Recently, regulatory activities have been accelerating. Gary Gensler, the head of the Security and Exchanges Commission (SEC) has asked for more authority to regulate cryptocurrency with the focus on stablecoins. > > Moreover, Fed Chairman Jerome Powell has said that a U.S. **central bank digital currency could eliminate the need for stablecoins like USDC**. And since USDC is a centralized stablecoin, a regulatory crackdown and a US CBDC could drive out USDC. > > **\_\_\_\_\_\_\_\_\_\_** > > **^(Sources:)** > > ^(\[1\]) [^(https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf)](https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf) > > ^(\[2\]) [^(https://en.wikipedia.org/wiki/USD\\Coin)](https://en.wikipedia.org/wiki/USD\Coin) > > ^(\[3\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[4\]) [^(https://www.coindesk.com/markets/2020/07/08/circle-confirms-freezing-100k-in-usdc-at-law-enforcements-request/)](https://www.coindesk.com/markets/2020/07/08/circle-confirms-freezing-100k-in-usdc-at-law-enforcements-request/) > > ^(\[5\]) [^(https://www.centre.io/blog/announcing-usdc-on-ten-new-blockchain-platforms)](https://www.centre.io/blog/announcing-usdc-on-ten-new-blockchain-platforms) > > ^(\[6\]) [^(https://www.circle.com/en/multichain-usdc)](https://www.circle.com/en/multichain-usdc) > > ^(\[7\] htps://assets.ctfassets.net/jg6lo9a2ukvr/3U43d7lUPmunUNLa0f9xui/24e439e3040c92179245485ebd1b5ba1/Gemini\\Dollar\_Examination\_Report\_08-31-21.pdf) > > ^(\[8\]) [^(https://www.coindesk.com/markets/2021/07/06/circle-isnt-winning-the-stablecoin-transparency-race/)](https://www.coindesk.com/markets/2021/07/06/circle-isnt-winning-the-stablecoin-transparency-race/) > > ^(\[9\]) [^(https://www.coindesk.com/business/2021/08/30/centre-consortium-hires-six-employees-including-former-circle-robinhood-executives/)](https://www.coindesk.com/business/2021/08/30/centre-consortium-hires-six-employees-including-former-circle-robinhood-executives/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2moj/top_10_usd_coin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xsqkga/monthly_optimists_discussion_october_2022/).

CointestAdmin

#USDC Pro-Arguments Below is an argument written by I-play-too-much-PUBG which won 3rd place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > USDC is the best stablecoin and here is why. > > > > > > > 1. USDC is transparent. Nothing is hidden in USDC due to its publicly verifiable attestations. This means it is much harder for criminal activity such as money laundering to occur. > > > > > 2. USDC is safe. USDC is backed by (debatably) the strongest economy in the world unlike some other stablecoins such as BUSD or DAI. USDC is only truly comparable to other US dollar backed coins such as USDT. > > > > > With that argument someone might say that USDT is also backed by the US dollar. With that, I follow with another argument. > > > > > 3. Due to the transparency and security of USDC, there is little to no “fairy money” or creation of cryptocurrency without being backed by anything. This is the strongest reason why USDC is superior to USDT. > > > > > > > 4. Although USDC is backed by the US dollar (centralized) it actually supports defi. USDC is an ERC-20 based token therefore it can be used by any dApp built on the ethereum network. > > > > > > In conclusion, USDT is currently used more and has a higher market cap than USDC, but USDC has stronger infrastructure and is more likely to be used largely in the future due to it being in support of defi. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestAdmin

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.

CointestAdmin

#Bitcoin Con-Arguments Below is an argument written by bkcrypt0 which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > # Bitcoin is failing its original mission, and institutional interest is going to make things worse. > > **Background** > > Satoshi Nakamoto was a financial revolutionary out to counter the fiat money presses that destroy a currency's value with inflation (looking at you Turkey and the U.S.) The method—create a currency with a fixed supply, mined liked gold to make it scarce, and digitally transferable anywhere in the world between any parties. > > **Lack of Stability** > > Bitcoin can't be used as a global currency to replace fiat and eliminate politicized money printing because it has to hold its value steady over time. > > Why? > > People work for dollars, euros, yen, or yuan because there is relative stability in their paychecks from week to week. Their food, rent/mortgage, clothing, energy costs are also relatively stable (inflation is the cost for using that particular currency, but it beats a 50% drop in value over the course of a few months, and most inflation around the world isn't as bad as Turkey or Venezuela.) > > Imagine being paid a flat 1BTC / year for a particular job. But you live in the U.S. and the value of that BTC just dropped over the course of the year by 50%. Your lease is fixed over 12 months. Your food costs are the same or maybe even higher. Not only do you still get hit with local inflation, your buying power just dropped by half. > > This is why over $155B\* have flowed into stable coins like USDT, USDC, BUSD, UST, and DAI) > > **Lack of Accountability** > > The relatively anonymous transfer of value between parties was supposed to be a positive aspect of bitcoin. Your money, so do what you want with it. The problem is, there are a lot of other people that also want anonymity — human traffickers, dangerous drug smugglers, crime syndicates, tax evaders. Sure they can also use USD (and most of them do), but they are also traceable if they enter the global financial system. > > Making it easier for criminals to evade authorities makes everyone less safe. And sure, no one likes to pay taxes, but consider the alternative. Roads, schools, social services, some hospitals, police and fire departments, they all rely on taxes. > > **Lack of security** > > Unlike gold, which is pretty much indestructible, Bitcoin holdings depend on keeping seed phrases secure. If there were a house fire a gold bar might melt, but it can be reformed. A hardware wallet will be destroyed and any seed phrases stored on paper will be gone. That's part of gold's appeal as a store of value. > > Also, were there to be an internet outage in any widespread way, Bitcoin is useless as a transaction currency (part of the appeal of physical paper money and metal coins.) While unlikely, this scenario speaks to the lack of overall security in Bitcoin as a means of exchange (it has other benefits like cryptographic security, but its lack of physicality poses problems with public perception, and practical uses.) > > **Acts like fiat, moves like fiat . . .** > > Bitcoin remains highly correlated to traditional finance markets (two recent readings were the highest they've been -- see link below) and doesn't exactly act as a hedge against inflation when it plummets in the face of, well, high inflation. > > What this shows is that big money is controlling Bitcoin (and by association the rest of crypto) by reacting in the same risk-off reaction when inflation flares up. > > It goes something like this: > > * When inflation rises, the Fed tightens money supply to slow things down. > * Big money flees from riskier assets like company stock (they likely won't be as profitable in a high inflation world) > * Stock prices drop \[and here's the problem\] > * Money does not flow INTO crypto as a hedge against this risk, it also flees. > > **Conclusion** > > Fighting fiat money printing excesses was never going to be easy, but as with most revolutions, unintended consequences often derail the original vision. > > For one, government policies can avert the worst of political impulses. That doesn't require a wholesale financial market revolution. > > U.S. inflation has also been remarkably low for well over two decades. It was a once in a century global pandemic that forced a massive print run of dollars. > > Bitcoin has also become just another a plaything for the rich, a commodity to be bought and sold for profit rather than the antidote to centralized money creation. And because even larger stacks of fiat are on the sidelines waiting to jump in, volatility is going to get even worse with big swings as fund managers chase and take profits. > > None of this means Bitcoin has no value in global finance. It just means it isn't going to serve the purpose as originally intended. > > \------------------ > > * For Bitcoin correlation to stocks see: [https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes](https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes) > * Stablecoin totals for the five mentioned above were calculated on 1/11/21 from CoinMarketCap - [https://coinmarketcap.com/](https://coinmarketcap.com/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2lpo/top_10_bitcoin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xsqkga/monthly_optimists_discussion_october_2022/).

CointestAdmin

#Bitcoin Con-Arguments Below is an argument written by bkcrypt0 which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > # Bitcoin is failing its original mission, and institutional interest is going to make things worse. > > **Background** > > Satoshi Nakamoto was a financial revolutionary out to counter the fiat money presses that destroy a currency's value with inflation (looking at you Turkey and the U.S.) The method—create a currency with a fixed supply, mined liked gold to make it scarce, and digitally transferable anywhere in the world between any parties. > > **Lack of Stability** > > Bitcoin can't be used as a global currency to replace fiat and eliminate politicized money printing because it has to hold its value steady over time. > > Why? > > People work for dollars, euros, yen, or yuan because there is relative stability in their paychecks from week to week. Their food, rent/mortgage, clothing, energy costs are also relatively stable (inflation is the cost for using that particular currency, but it beats a 50% drop in value over the course of a few months, and most inflation around the world isn't as bad as Turkey or Venezuela.) > > Imagine being paid a flat 1BTC / year for a particular job. But you live in the U.S. and the value of that BTC just dropped over the course of the year by 50%. Your lease is fixed over 12 months. Your food costs are the same or maybe even higher. Not only do you still get hit with local inflation, your buying power just dropped by half. > > This is why over $155B\* have flowed into stable coins like USDT, USDC, BUSD, UST, and DAI) > > **Lack of Accountability** > > The relatively anonymous transfer of value between parties was supposed to be a positive aspect of bitcoin. Your money, so do what you want with it. The problem is, there are a lot of other people that also want anonymity — human traffickers, dangerous drug smugglers, crime syndicates, tax evaders. Sure they can also use USD (and most of them do), but they are also traceable if they enter the global financial system. > > Making it easier for criminals to evade authorities makes everyone less safe. And sure, no one likes to pay taxes, but consider the alternative. Roads, schools, social services, some hospitals, police and fire departments, they all rely on taxes. > > **Lack of security** > > Unlike gold, which is pretty much indestructible, Bitcoin holdings depend on keeping seed phrases secure. If there were a house fire a gold bar might melt, but it can be reformed. A hardware wallet will be destroyed and any seed phrases stored on paper will be gone. That's part of gold's appeal as a store of value. > > Also, were there to be an internet outage in any widespread way, Bitcoin is useless as a transaction currency (part of the appeal of physical paper money and metal coins.) While unlikely, this scenario speaks to the lack of overall security in Bitcoin as a means of exchange (it has other benefits like cryptographic security, but its lack of physicality poses problems with public perception, and practical uses.) > > **Acts like fiat, moves like fiat . . .** > > Bitcoin remains highly correlated to traditional finance markets (two recent readings were the highest they've been -- see link below) and doesn't exactly act as a hedge against inflation when it plummets in the face of, well, high inflation. > > What this shows is that big money is controlling Bitcoin (and by association the rest of crypto) by reacting in the same risk-off reaction when inflation flares up. > > It goes something like this: > > * When inflation rises, the Fed tightens money supply to slow things down. > * Big money flees from riskier assets like company stock (they likely won't be as profitable in a high inflation world) > * Stock prices drop \[and here's the problem\] > * Money does not flow INTO crypto as a hedge against this risk, it also flees. > > **Conclusion** > > Fighting fiat money printing excesses was never going to be easy, but as with most revolutions, unintended consequences often derail the original vision. > > For one, government policies can avert the worst of political impulses. That doesn't require a wholesale financial market revolution. > > U.S. inflation has also been remarkably low for well over two decades. It was a once in a century global pandemic that forced a massive print run of dollars. > > Bitcoin has also become just another a plaything for the rich, a commodity to be bought and sold for profit rather than the antidote to centralized money creation. And because even larger stacks of fiat are on the sidelines waiting to jump in, volatility is going to get even worse with big swings as fund managers chase and take profits. > > None of this means Bitcoin has no value in global finance. It just means it isn't going to serve the purpose as originally intended. > > \------------------ > > * For Bitcoin correlation to stocks see: [https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes](https://seekingalpha.com/news/3784018-how-does-bitcoin-correlate-with-us-dollar-stocks-other-asset-classes) > * Stablecoin totals for the five mentioned above were calculated on 1/11/21 from CoinMarketCap - [https://coinmarketcap.com/](https://coinmarketcap.com/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2lpo/top_10_bitcoin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/xsqkga/monthly_optimists_discussion_october_2022/).

80worf80

Probably one of those "don't get caught" laws. They can't actually stop anyone from moving (most) crypto from one wallet to another. Excluding centralized shitcoins like USDT or USDC with wallet blacklist functions

Nohbody1234567

CBDC can be sanctioned, just as USDC. I am sure the west don't want to use RMB either. This is why govt want to control stablecoin. This is why Binance convert any stablecoin to BUSD I believe. A lot of these blockchain projects will one day be running commerce logistics, nft's, defi etc. That is where we are headed. Software is code and code is free speech. Understand the first amendment. This is where we headed. Decentralization is key so nations states cannot hold power over each other. We are moving from a centralized world to decentralized world . Look at History. It is stupid to tax crypto based on capital gains because the velocity of value will move so fast that nobody cares. If govts want to stifle innovation, then companies can just move to different jurisdiction. Since you own your own private keys, you are take your assets with you. Trade is stablecoins or trade in digital gold. The lawmakers will have to decide and learn fast or they will be making a big mistake. Bartering existed when humans began trading. This is why you notice all the altcoins have trading pairs with btc. btc will hit a market cap at which point it will be stable and slowly go up , not down. Let the users decide what is has value by voting with their money. The FIAT system is broken.

coinfeeds-bot

tldr; Telefonica has partnered with Bit2Me to allow clients to pay for services in digital assets. The Spanish telecom company will allow customers to settle bills in Bitcoin (BTC), Ether (ETH), Litecoin (LTC), USDC (USDC), and other coins. Vueling, the country's largest airline, will allow passengers to pay in Bitcoin and other cryptocurrencies from January 2023. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

Lillica_Golden_SHIB

TL;DR: Telefonica teamed up with Bit2Me to enable settlements in Bitcoin (BTC), Ether (ETH), Litecoin (LTC), USDC, and other coins.